CPR Indicator for Day Trading | Technical Indicators

A Price Action Strategy using CPR Indicator →

Hey there!

Today we’ll learn a price action trading strategy using the CPR Indicator, brought to us by Mr. Gomathi Shankar, a full-time price action trader.

📈 Understanding the CPR Indicator

➡️ The price action strategy we are about to learn relies on the CPR indicator for day trading. Before understanding CPR, it is important to understand Pivot Points.

➡️ The Pivot Point is like a median line calculated based on the previous day’s open, high, low, and close levels. This median line acts like a borderline between bulls and bears.

➡️ The CPR indicator consists of 3 Pivot lines, together called the Central Pivot Range (CPR).

  • Central Pivot = High + Low + Close / 3

  • Bottom Pivot = High + Low / 2

  • Top Pivot = (Pivot - BC) + Pivot

📌 CPR Strategy for Day Trading

➡️ High Probable trade entries - If both hourly and 5-minute charts trade above weekly and daily CPR lines respectively, it is called a High Probable long opportunity. If both hourly and 5-minute charts trade below weekly and daily CPR respectively, it is called a High Probable short opportunity.

➡️ Low Probable trade entries - If the candles are below 5-minute CPR in the daily chart but above weekly CPR in the hourly chart then it is a Low probable short entry.

Note: High Probable trade opportunities can be used for day trading and the positions can be held till the end of the day. The Low Probable trade is only suitable for quick scalping and should last for only 30 minutes. 

Learn to use CPR for Day & Swing Trading

Get the CPR Indicator Price Action Course by Mr. Gomathi Shankar, where you will learn how to apply the CPR indicator for making confident, high-probability trades.

Use NL30 at checkout for a 30% off ⬇️

None of the above stock ideas are intended as recommendations. Please consult a registered advisor before buying/selling.

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